From 1 July 2017.
Personal deductible contributions for employees as well
Currently, only those earning less than 10% of their income 7 from employment (the ‘10% test’) are eligible to claim super contributions as a tax deduction.
From 1 July 2017, all individuals under the age of 65 (and those aged 65 to 74 who work more than 40 hours over 30 consecutive days in the financial year the contribution is being made), will be able to claim a tax deduction for personal super contributions.
This change will enable more people to be able to:
• make personal deductible contributions, and
• make greater use of the cap that applies to personal deductible and other concessionally taxed super contributions.
Key examples include people who:
• are employed and receive superannuation guarantee contributions that are within the concessional contribution cap, but their employer doesn’t offer salary sacrifice arrangements
• switch from being a self-employed contractor to an employee during the course of a year and fail the 10% test due to employment income, and
• are residents for tax purposes who are working overseas for a foreign employer and their employer can’t or won’t contribute to an Australian super fund.
Make spouse super contributions
Currently, a tax offset of up to $540 is available for individuals who make superannuation contributions to their spouse’s account if their spouse earns7
up to $13,800 pa.
From 1 July 2017, the Government will allow more people to access the offset by extending eligibility to those whose spouses earn up to $40,000 pa.
7 Includes assessable income, reportable fringe benefits and reportable employer super contributions.
Owl Financial Management is an Adelaide Based Financial Advice business.